When you complete a personal or business transaction, it is always recommended to look into various tax options in order to determine when, how or whether to complete such transaction at all, so that you either pay less tax or eliminate the tax entirely. There is always more than one method of completing an individual or business transaction. And it is absolutely permissible to choose the course of action that will result in the lowest legal tax liability, i.e. employing tax avoidance strategies. Do not, however, confuse tax avoidance with tax evasion – (the reduction of tax through deceit or concealment). Tax avoidance is legal, tax evasion is not!
There are many tax planning strategies available which can help in accomplishing the following goals:
- Reduce the amount of your taxable income
- Reduce your tax rate
- Control the time when the tax must be paid
- Increase your tax deductions
- Claim any available tax credits
- Control the effects of the Alternative Minimum Tax
Please be advised that tax planning strategies can be employed before you complete a transaction or make a decision on how to handle your financial affairs, hence the word “planning”. Consult with our tax professionals before you make major decision on buying or selling real estate, investing in IRA plans, conducting a transaction between related persons or simply deciding whether to file jointly with or separately from your spouse. In these and many other situations, we can provide advice on how you can save your hard-earned cash and pay less tax legally.